Accounting Studies and Tax Journal (COUNT) Vol 1 (1) 2024 : 117-130 The Effect of Financial Leverage on Profitability in the Food and Beverage Industry (2017-2021) Pengaruh Financial Leverage terhadap Profitability pada Perusahaan Makanan dan Minuman (2017-2021) Irwan Moridu Universitas Muhammadiyah Luwuk *irwanmoridu@gmail.com *Corresponding Author ABSTRACT This study aims to investigate the effect of financial leverage, that's measured through the Debt to Asset Ratio (DAR) and Debt to equity Ratio (DER), on return on assets (ROA) in food and beverage sector companies indexed at the Indonesia stock change (BEI). at some stage in the 2017-2021 period. Financial report records from 14 corporations selected the usage of the purposive sampling technique was analyzed via a couple of linear regression. The studies results show that the DAR ratio does not have an extensive effect on ROA, while the DER ratio has a giant high quality that has an effect on ROA. This research presents critical perception into capital structure management and its effect on organisation financial performance amidst the dynamics of the food and beverage industry. Keywords: Financial Leverage, Debt to Asset Ratio, Debt to Equity Ratio, Profitability, Return on Asset ABSTRAK Penelitian ini bertujuan untuk mengetahui pengaruh financial leverage yang diukur melalui Debt to Asset Ratio (DAR) dan Debt to Equity Ratio (DER) terhadap return on assets (ROA) pada perusahaan sektor makanan dan minuman yang terindeks di Bursa Efek Indonesia. (BEI). pada tahap tertentu dalam periode 2017-2021. Catatan laporan keuangan dari 14 perusahaan yang dipilih menggunakan teknik purposive sampling dianalisis melalui beberapa regresi linier. Hasil penelitian menunjukkan bahwa rasio DAR tidak berpengaruh luas terhadap ROA, sedangkan rasio DER mempunyai kualitas yang sangat tinggi sehingga berpengaruh terhadap ROA. Penelitian ini menyajikan persepsi kritis terhadap manajemen struktur modal dan pengaruhnya terhadap kinerja keuangan organisasi di tengah dinamika industri makanan dan minuman. Kata Kunci: Financial Leverage, Debt to Asset Ratio, Debt to Equity Ratio, Profitability, Return on Asset Introduction The financial overall performance of a business entity is the principal attention in tracking and comparing numerous strategic choices taken with the aid of management. The idea of financial performance includes numerous components, which includes profitability, liquidity, leverage, and operational efficiency, all of which play an essential function in determining the competitiveness and survival of an organization amidst market uncertainty (Abubakar, 2017). In a dynamic global business context, financial overall performance is the primary benchmark for stakeholders, including owners, investors, lenders and inner control. An employer's potential to generate sustainable profits, hold healthy liquidity, and control its capital structure wisely are all determining elements in accomplishing long-time period desires (Ahmed, 2018). The role of financial overall performance is not only constrained to monitoring operational sustainability, however additionally concerns funding attractiveness, enterprise fee, and the company's ability to face outside challenges. Therefore, a deep understanding of the factors that have an impact on financial performance is essential to enable companies to make COUNT, 1(1) 2024: 117-130, https://journal.ppipbr.com/index.php/count/index | DOI https://doi.org/10.62207 Copyright © 2024 THE AUTHOR(S). This article is distributed under a a Creative Commons Attribution-NonCommercial 4.0 International license.